The Federal Financial Supervisory Authority (BaFin), an independent German regulatory institution, on Friday red-flagged the activities of Crypto-Capitals, a company that appears to be offering cryptocurrency-focused trading products, including CFDs, in Germany without complying with its financial legislation.
This warning is yet another case in which the German watchdog seems to have stepped up their game and gone after illegal cryptocurrency brokers.
BaFin has also advised the public to always verify the company’s identity (identity details, country of establishment, etc.) and to never trust a company if it cannot be clearly identified.
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In its capacity of supervising the financial market and enforcing compliance with rules and regulations, BaFin has issued a series of advisories in recent years, most recently when it announced specific details about its retail forex and CFDs trading stance. The watchdog was focusing on brokers that do not provide negative balance protection, exposing clients to unlimited losses.
In addition, BaFin has been wary of the booming cryptocurrency industry. The German watchdog has been adamant in its warnings toward investors, elaborating on the potential risks associated with investing in Bitcoin and other cryptocurrencies. Moreover, BaFin has also issued warnings over ICOs, informing the public over high risk associated with various unrealistic technological claims and even scams.
Germany continues to be an active leader in its assessment and potential regulation of the cryptocurrency field. The country’s officials are taking steps to ensure the safety of German citizens and investors from around the globe. More recently, Germany partnered with France to jointly push for Bitcoin regulation, which was discussed at the G20 summit in Argentina.